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Dec 31, 2023
Under Armour Q3 2024 Earnings Report
Announced third quarter fiscal 2024 results and tightened fiscal 2024 outlook.
Key Takeaways
Under Armour's third quarter revenue results were in line with expectations, with better-than-anticipated profitability. Revenue was down 6 percent to $1.5 billion. The company is working to reset Under Armour toward a path of improved revenue growth and enhanced value creation in the future.
Revenue decreased by 6 percent to $1.5 billion, or 7 percent on a currency-neutral basis.
Wholesale revenue decreased 13 percent to $712 million, while direct-to-consumer revenue increased 4 percent to $741 million.
North America revenue decreased 12 percent to $915 million, and international revenue increased 7 percent to $566 million.
Diluted earnings per share was $0.26. Adjusted diluted earnings per share was $0.19.
Under Armour
Under Armour
Under Armour Revenue by Segment
Under Armour Revenue by Geographic Location
Revenue by Segment
Apparel Revenue
CapyFin.comFootwear Revenue
CapyFin.comAccessories Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Under Armour updated fiscal 2024 outlook. Revenue is expected to be down 3 to 4 percent. Gross margin is expected to be up 120 to 130 basis points. Operating income is expected to reach $287 million to $297 million. Diluted earnings per share is expected to be $0.57 to $0.59.
Positive Outlook
- Gross margin is expected to be up 120 to 130 basis points, an increase from the prior expectation of a 100 to 125 basis point increase.
- Selling, general & administrative expenses are unchanged from the previous expectation of flat to down slightly.
- Adjusted operating income is expected to be $310 million to $320 million.
- Capital expenditures are now expected to reach between $210 million and $230 million versus the previous expectation of $230 million and $250 million.
Challenges Ahead
- Revenue is expected to be down 3 to 4 percent, tightening the previous expectation of a 2 to 4 percent decline.
- Operating income is expected to reach $287 million to $297 million.
- Diluted earnings per share is expected to be $0.57 to $0.59, which includes $0.12 of after-tax benefit from the company's final earn-out in connection with the sale of the MyFitnessPal platform and $0.05 of negative impact from the company's litigation reserve.
- Adjusted diluted earnings per share to be $0.50 to $0.52.
Revenue & Expenses
Visualization of income flow from segment revenue to net income